Industrialization-1
Terms
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- Laissez-Faire Capitalism
- Theory that calls for no govenrment regulation of economic matters. Intended result: economy would prosper.
- Industrial Revolution
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1865 to 1900
U.S. Grew into Industrial Empire
-Spread of Railroads
-Growth of steel mills
-Spread of oil fields
-Practical Inventions - Thomas Edison
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"Wizard of menlo park"
"success is 1% inspiration and 99% perspiration"
-phonograph (1877)
-Lightbulb (1879)
-1,093 patents
-First electric powerplant 1882 in NYC - Corporations
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Shares of stock/certificates of ownership in company sold.
-Profit off of stock sales.
-Limited liability, stockholders not held responsible - horizontal integration
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One company's ownership of other companies involved in the same business.
-Key to rockefeller's success - vertical integration
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-Key to Carnegie and Rockefeller's success.
-Acquiring companies that provided materials and services upon which the enterprise depended. - Monopoly
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Exclusive control of an industry, generally by a trust.
-Carnegie Steel and Standard oil considered monopolies. - Limited Liability
- Advantage for stockholders in corporations over proprietors and partners, where they are not responsible for the corporation's debt.
- Andrew Carnegie
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-Scottish immigrant (1848)
-Worked and reinvested in Penn RR.
-Established Carnegie Steel, one of first monopolies. - J. P. Morgan
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Bought Carnegie Steel company for nearly $500 million.
-banking tycoon. - Sherman Antitrust Act, 1890
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Government's attempts to regulate business
-Growing public pressure for more action.
-Congress declared all monopolies and trusts in restraint of trade illegal.
-Failure to define what constituted a monopoly or trust. Difficult to enforce - Henry Ford
- Introduced assembly line in Detroit automobile plant, being the first to use an assembly line.
- "Captains of Industry"
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Businessmen who helped advance U.S. Economy.
-innovative
-industrious
-fair
-honest
-philantropic
-visionary - "Robber Barons"
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-Sly
-corrupt
-unscrupulous
-dishonest
-self-centered
-mean - John D. Rockefeller
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-Founder of Standard Oil 90% of industry
-Set out to gain control of industry when it was forming with fierce competition.
-Horizontal Integration: Argued that such competition was inefficient
-Persuaded RR to give ilegal refunds for using lines to transport oil. - Mass Marketing
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New methods of marketing to sell products during Industrial revolution.
-Brand names/packaging.
-Standard Oil conveyed industry standard.
-Advertising = newspapers/magazines/billboards.
-Goods sold in department stores such as wanamakers.